Bank trio line up €920 million loan for Imagina buy

LONDON (LPC) - Three banks have lined up a €920 million (820.15 million pounds) leveraged loan financing to back the acquisition of a majority stake in Spanish sports rights group Imagina, banking sources said.

Chinese private equity firm Orient Hontai Capital agreed to buy a majority stake in Imagina for $1 billion, Reuters reported in October 2017, the latest deal from deep-pocketed Chinese investors to transform the Asian country into a global soccer powerhouse.

Deutsche Bank, Citi and Goldman Sachs are leading the debt financing, which is being shown to a select group of institutional investors before launching for general syndication in a couple of weeks, the sources said.

The financing comprises an €860 million term loan B and a €60 million revolving credit facility, the sources said.

Orient was not immediately available to comment on the financing.

Orient Hontai entered into exclusive talks with Imagina’s shareholders in May 2017, scooping a dozen other bidders, including French media group Vivendi, Chinese real estate and entertainment firm Dalian Wanda Group Co or US media company Liberty Media.

The deal was made at a multiple of 10 times 2016 Ebitda and valued the company at €1.6 billion.

Imagina, usually just known as Mediapro after the name of one of its subsidiaries, has the rights to distribute the La Liga soccer championship, Europe’s third-richest league.

Chinese investors have been snapping up sports and entertainment assets abroad.